CMC Markets, launched in 1989 in the United Kingdom, has become one of the world’s leading CFD and spread betting providers. It is regulated by the FCA in the UK.
CMC Markets has been recognized as the ‘UK Financial Services Provider of the Year’ by Shares magazine in 2011, 2013 and 2014, and is the recipient of almost 60 awards globally in the last two years, including ‘Best Online Trading Platform’, ‘Best Mobile Trading Platform’ and ‘Best Investor Education’. These awards reflect the broker’s focus on providing clients with the best possible trading experience.
Since launching in the United Kingdom in 1989, CMC Markets has broadened its presence to cover Asia, Australia, New Zealand, Europe and Canada, making them a world leading online CFD provider.
- Name: CMC Markets
- Website: cmcmarkets.co.uk
- Established: 1989
- Regulation: FCA, ASIC
- Country: United Kingdom
- U.S. Clients Allowed: No
There are two types of accounts at CMC Markets. They offer dedicated CFD trading and corporate accounts. According to the comparison charts on their website, the accounts are very similar. Traders can choose from over 5,700 products across 5,000 shares, 79 global indices, 320 different currency pairs, commodities, and treasuries, and benefit from competitive pricing, such as tight spreads, low margins and commissions.
Spreads differ depending on the asset chosen. Charts listing both the minimum and typical spreads and the trading times for each market are conveniently posted on the website.
There is no minimum deposit required to open an account. Some of the key features of either type of account are that they accept 10 different forms of currency for deposit, order boundaries, account netting, telephone trading, a price depth ladder, and position hedging.
I was pleased to find when doing this CMC Markets review that a demo account is offered on the CFD trading accounts and can be used on mobile devices as well.
CMC Markets is big on spread betting which is a tax-efficient way of trading on the price movements of almost all financial products. With spread betting, traders don’t buy or sell the underlying asset but rather place a bet on whether the price of a product will go up or down in value.
Spread betting uses margin which allows traders you to do more with their capital such as open more or bigger positions than they would be able to if they had to fund the full value of the position on their own.
CFD trading is another area of trading at CMC Markets. With CFDs, traders don’t buy or sell the underlying asset; they buy or sell a number of units, depending on whether they think a product’s price will go up or down. For every point the price moves in their favor, they gain multiples of the number of units they have bought or sold. CFDs provide a flexible way to trade on the price movements of thousands of global financial products.
Since CFDs are leveraged products, traders only need to deposit a small percentage of the full value of the trade in order to open a position. Besides the spread, traders pay a holding cost at the end of each trading day, a fee for market data and a commission on UK-based shares starting from 0.10% of the full exposure of the position with a minimum commission charge of £9.
Spread betting and CFD trading both provide similar economic benefits for investments in shares, indices, commodities and currencies using margin. However, spread betting is usually more popular with UK residents because profits are exempt from both capital gains tax and stamp duty.
Additional features offered to traders include hedging and the ability to sell short in a falling market.
CMC Markets was one of the first companies to provide online Forex trading. There are over 340 currency pairs available to trade as Spread bets and CFDs, including all of the major crosses as well as a selection of emerging market currencies.
Forex traders benefit from 100% automated execution, optional 1-Click trading, fully-customizable trading tools and layouts, trading from award winning charts, spreads as low as 0.7pts and margins starting from 0.20%.
High volume traders receive a cash rebate.
CMC Markets offers a range of educational features that are geared towards both new and experienced traders. There are extensive choices of topics and educational resources ranging from platform guides to explanations of technical indicators. They offer webinars, videos, trading and platform guides, a glossary of terms and more.
Anyone interested in social trading can link onto the London Trader Network where traders from all over the globe can experience live trading with similarly matched people in the CMC Markets London office.
A live webinar is offered which provides a running commentary on the monthly non-farm payroll report. In addition, instructional webinars are provided for training traders on the most successful way to use CMC Markets’ Next Generation platform. The session is held in the London office and is hosted by one of their platform specialists.
In addition, their trading strategy videos cover a wide range of topics and provide an introduction to trading and the various strategies beneficial for traders.
I found the Trading Smart series very informative. This free series of articles is made up of concise guides on some of the key trading concepts and analysis techniques and can be accessed by clients via CMC Markets Webinars.
Via technical and fundamental analysis, the CMC Markets team provides valuable, regular updates on market conditions to CMC Markets clients through their trading platforms and to the public through major media outlets, their website and twitter. A listing of the analysts and their locations can be viewed on the site.
Market reports provided by Reuters are added daily to the news analysis page and an economic calendar lists online and offline events.
Traders can contact CMC Markets by email and phone to their London office. An online email form is provided. CMC Markets has headquarters in several locations and customers can speak to representatives in Chinese, English, French, German, Italian, Spanish and Swedish. There is also an email address given for each of their offices. Given the amount of resources the website contains, it is surprising that they do not seem to offer other methods of customer service such as chat or sms.
Spread betting and CFD trading is the focus at CMC Markets and they go out of their way to educate traders so they can come out profitable. On the whole, CMC Markets uses a fantastic spread betting platform and the selection of training materials at is second to none. They have protection for their customers up to 50,000 GBP through the Financial Services Compensation Scheme which can be a huge advantage over other firms based in areas with much less regulation.